A rate of interest charged on a mortgage loan, commonly referred to as “the cost of borrowing money.”
An interest rate is a rate of interest charged on a mortgage loan, commonly referred to as “the cost of borrowing money.”
The two main components of a monthly mortgage payment are principal and interest. The interest portion of the mortgage payment will be based on the interest rate.
Mortgage interest rates are volatile; they rise and fall with the market until they are “locked in” on a property with a fully signed purchase contract. Mortgage interest rates can be either fixed or variable.